In a striking escalation of transatlantic trade tensions, US President Donald Trump has warned of a potential 35% tariff on European Union products—specifically targeting wines and spirits—if the EU fails to uphold the terms of a recently signed trade agreement.
The announcement was made on Tuesday, August 6, during an interview with CNBC, sending shockwaves through the European beverage sector.
At the heart of this warning is a sweeping trade pact negotiated between Washington and Brussels in late July. Under the agreement, the United States agreed to cut tariffs on most EU products from 30% to 15%, with the reductions expected to take effect on August 8—seven days later than originally scheduled. The deal also promises zero tariffs on select goods and outlines substantial strategic purchases totaling USD 750 billion in energy and technology sectors. Crucially, the EU committed to investing USD 600 billion in the US economy and expanding purchases of American military equipment.
However, European wines and spirits—initially thought to be included in the zero-tariff category—were excluded from the final list. This exclusion has drawn strong criticism from industry representatives on both sides of the Atlantic. Groups like the US Wine Trade Alliance (USWTA) have lobbied vigorously to secure tariff exemptions for wine and spirits, but have so far received no formal response.
Trump’s latest remarks signal a hardening stance. He insisted that if the EU does not inject the promised USD 600 billion into the American economy, the US will impose a steep 35% tariff on EU products, including wine and spirits, with immediate effect. He characterized the investment as a “gift” that his administration would use to stimulate domestic priorities.
For European wine-producing nations such as France, Italy, and Spain, the potential tariffs present a significant economic threat. The United States represents one of their largest export markets outside of Europe. A 35% tariff would severely undermine their competitiveness, likely resulting in declining sales and lost market share to producers from other regions, such as South America and Australia.
European stakeholders are urging Brussels to act swiftly and decisively. Business associations are calling on the European Commission to safeguard the interests of the sector and prevent punitive measures from destabilizing the transatlantic wine trade. For now, the Commission has refrained from commenting directly, though sources suggest continued commitment to negotiation and de-escalation.
As August 8 approaches, all eyes are on Washington and Brussels. The outcome will determine whether the initial agreement stands—or if another round of retaliatory trade measures plunges the US-EU relationship into further uncertainty. For producers, importers, and distributors across both continents, the clock is ticking.
Source: Vinetur